IDT Q4 Fiscal 2026 Earnings: NRS Profit Up 47%, EBITDA Beats Guidance

IDT Corporation (IDT) reported fiscal 2026 fourth-quarter earnings on September 28, 2026, for the quarter and year ended July 31, 2026, and filed its annual report the next day. The results came in above the prior baseline [1][2]. Each of the three questions that mattered before the report now has a new answer. NRS, the point-of-sale platform for independent stores, grew quarterly revenue 31% even though terminal additions slowed. BOSS Money's shift to digital remittances lifted profit, but expenses absorbed most of the gross profit gain. The Traditional Communications gross profit stopped falling, and full-year consolidated Adjusted EBITDA reached $154.6 million, above the $150 million to $152 million guidance [1]. The picture of growth and profit mix is stronger as a result, while cash conversion weakened because the remittance business tied up more working capital.

IDT mainly serves immigrant communities and independent retailers in the United States. Its businesses are the NRS point-of-sale platform, remittances, net2phone cloud communications, and Traditional Communications, which combines mobile top-ups, international calling and wholesale voice [2]. Traditional Communications is about two-thirds of revenue with a gross margin below 20%, and the cash it generates funds the three higher-margin businesses [1][2].

NRS growth accelerated on revenue per store

NRS grew much faster in the fourth quarter than its earlier trend of about 22%. Quarterly revenue was $45.0 million, up 31% year over year, and Adjusted EBITDA was $14.0 million, up 47% [1]. Full-year Adjusted EBITDA rose 30%, above the 20% to 25% growth management outlined in March [1][3].

The growth came mainly from higher contribution per store. Active terminals reached 40,400 at period end, up only 8.6% year over year, while the newly disclosed average monthly network gross profit per location was $383, up 22%, mainly from NRS Pay payment processing [1].

The acceleration comes with caveats. Advertising and Data revenue rose 49% to $10.1 million. The CEO said the recently consolidated OnCore Digital acquisition helped, but the company did not disclose OnCore's revenue, and the annual report notes say its revenue and earnings since the May acquisition were not material [1][4]. Even if all of the advertising increase came from the acquisition, the remaining subscription and service revenue still grew about 22%. Payment processing accounts rose by only about 200 in the quarter, and accounts per terminal fell from 74.3% to 72.8% [1]. The company did not explain why NRS gross margin rose from 89.0% to 94.8%, and the annual report's description of full-year advertising revenue is inconsistent with the results table [1][5]. Management expects fiscal 2027 NRS revenue growth of 20% to 25%, with EBITDA growing faster [6].

BOSS Money digital remittances lifted profit, but conversion was weak

The BOSS Money digital channel kept expanding and lifted segment profit. In the fourth quarter, digital transactions rose 20% and digital revenue rose 22% to $33.7 million; retail channel revenue fell $1.9 million, about 30% of the digital gain [1]. The company attributed the shift to its own customer acquisition spending and to the tax on cash remittances in effect from 2026 [1].

Profit conversion lagged the gross margin improvement. Segment gross profit rose $6.0 million and gross margin reached 65.6%, but selling, general and administrative expense rose $5.1 million, so income from operations rose only $0.7 million to $5.5 million [1]. The annual report attributes the expense growth to card processing charges, chargebacks and other digital transaction costs [2]. Settlement assets and remittance prefunding rose $75.1 million over the year, which cut full-year operating cash flow excluding customer deposits from $107.8 million to $60.9 million [1][2].

Traditional Communications gross profit stopped declining

Traditional Communications gross profit was flat year over year in the fourth quarter, so lower expenses turned into higher profit. Top-up revenue grew 6%, and the international calling revenue decline narrowed to 10%. Gross profit was $41.1 million, up 0.4%, and Adjusted EBITDA rose 12% to $19.9 million [1].

Whether this improvement lasts is still unproven. About $1.1 million of the $2.1 million EBITDA increase came from higher stock-based compensation and severance add-backs [1]. The fourth quarter is the peak calling season, and full-year segment gross profit still fell 4% [2]. Management expects the segment to add EBITDA again in fiscal 2027 [6].

Conclusion

The report strengthens the view of IDT's growth and profit mix: the three newer businesses rose to about 53% of combined segment Adjusted EBITDA [6]. The view of cash creation weakened, because higher remittance volume ties up more cash. IDT ended the year with $271.9 million in cash and investments and no debt [1]. Next quarter, the tests are whether NRS keeps revenue growth above 20% and discloses OnCore's contribution, whether BOSS Money expenses grow more slowly than gross profit, and whether Traditional Communications gross profit holds up outside the peak season.

Sources

[1] IDT 8-K filed 2026-09-28 · Exhibit 99.1 4Q26 and FY2026 results, 2026-09-28, IDT Corporation Form 8-K, https://www.sec.gov/Archives/edgar/data/1005731/000143774926031364/ex_950508.htm [2] IDT 10-K filed 2026-09-29 · Item 7 MD&A, 2026-09-29, IDT Corporation Form 10-K, https://www.sec.gov/Archives/edgar/data/1005731/000143774926031469/idt20260731_10k.htm [3] IDT earnings call 2026-03-10 · NRS fiscal 2026 EBITDA plan and CPM softness, 2026-03-10, IDT earnings call [4] IDT 10-K filed 2026-09-29 · Note 2 OnCore acquisition, 2026-09-29, IDT Corporation Form 10-K, https://www.sec.gov/Archives/edgar/data/1005731/000143774926031469/idt20260731_10k.htm [5] IDT 10-K filed 2026-09-29 · Item 1 NRS display advertising, 2026-09-29, IDT Corporation Form 10-K, https://www.sec.gov/Archives/edgar/data/1005731/000143774926031469/idt20260731_10k.htm [6] IDT earnings call 2026-09-28 · Q4 and FY2026 call summary, 2026-09-28, IDT earnings call summary